Kawagishi Bridge Works Co (TSE:5921) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Kawagishi Bridge Works Co Operating Margin % Related Terms
Kawagishi Bridge Works Co Operating Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Kawagishi Bridge Works Co Operating Margin % Chart
TSE:5921 vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, Kawagishi Bridge Works Co's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Kawagishi Bridge Works Co Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Kawagishi Bridge Works Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kawagishi Bridge Works Co's Operating Margin % falls into.
Kawagishi Bridge Works Co Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Kawagishi Bridge Works Co's Operating Margin % for the fiscal year that ended in Sep. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Kawagishi Bridge Works Co (TSE:5921) has a Operating Margin % of 3.81% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Kawagishi Bridge Works Co and its competitors. This is 49% below median its historical median of 7.45. Over the past decade, Kawagishi Bridge Works Co's Operating Margin % has ranged from 5.44 to 14.54. According to the industry distribution chart, Kawagishi Bridge Works Co ranks #208 out of 611 companies in the Steel industry, placing it in the top 34%.
Is Kawagishi Bridge Works Co's Operating Margin % too high?
Kawagishi Bridge Works Co's current Operating Margin % of 3.81% is 49% below median its 10-year median of 7.45. Over the past 10 years, this metric has ranged from a low of 5.44 to a high of 14.54. The Steel industry median Operating Margin % is 2.99. Kawagishi Bridge Works Co's value of 3.81% is 27.4% above this industry median. Based on the distribution chart, Kawagishi Bridge Works Co ranks #208 out of 611 companies in the Steel industry, which is above the industry midpoint. Overall, Kawagishi Bridge Works Co has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kawagishi Bridge Works Co's Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Kawagishi Bridge Works Co ranks #208 out of 611 companies for Operating Margin %. This puts Kawagishi Bridge Works Co in the upper half of its industry. The industry median Operating Margin % is 2.99. Kawagishi Bridge Works Co's value of 3.81% is 27.4% above this benchmark. Historically, Kawagishi Bridge Works Co's own Operating Margin % has ranged from 5.44 to 14.54 over the past decade. While the company's 10-year median is 7.45 vs. the industry median of 2.99, Kawagishi Bridge Works Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Steel company?
The median Operating Margin % among Steel companies is 2.99, based on 611 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kawagishi Bridge Works Co's current Operating Margin % of 3.81% is 27.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Kawagishi Bridge Works Co and its competitors. For the Steel industry, the median Operating Margin % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kawagishi Bridge Works Co's current Operating Margin % is 3.81%, which is 49% below median its own 10-year median of 7.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kawagishi Bridge Works Co stock overvalued right now?
Based on GuruFocus' analysis, Kawagishi Bridge Works Co (TSE:5921) is currently considered Fairly Valued. The stock's GF Value™ is 円3,915.81, compared to a current price of 円3,905.00 — trading 0.3% below its estimated fair value. The current Operating Margin % is 3.81%, which is 49% below median its 10-year median of 7.45 and 27.4% above the Steel industry median of 2.99. Kawagishi Bridge Works Co's overall GF Score™ is 77/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Kawagishi Bridge Works Co (TSE:5921), the current Operating Margin % is 3.81% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Kawagishi Bridge Works Co (TSE:5921) Overvalued in 2026?
Based on GuruFocus' analysis, Kawagishi Bridge Works Co stock appears to be undervalued.
The current stock price of 円3,905.00 is trading 0.3% below its estimated GF Value™ of 円3,915.81.
GuruFocus considers Kawagishi Bridge Works Co to be Fairly Valued.
Key valuation signals for TSE:5921:
Operating Margin %: 3.81% (49% below median its 10-year median of 7.45)
GF Value™: 円3,915.81 vs. price of 円3,905.00 (0.3% below fair value)
Industry Position: 27.4% above the Steel median (#208 of 611)
No single metric tells the full story. See the TSE:5921 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kawagishi Bridge Works Co Ltd is a Japanese-based company involved in the business of designing, manufacturing, and field construction of steel structures such as steel frames and others. It is also involved in the precast concrete business.
77GF Score
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